Is it possible to buy and sell Condotel in Vietnam?
In Vietnam, there exist two new and controversial types of real estate without a specific legal framework, namely Condotel and Officetel. Condotel - also known as hotel apartments, is a type of real estate that combines apartments (Condominium) and hotel (Hotel). Officetel is a type of real estate that combines office (Office) and hotel (Hotel)
VINPEARL CONDOTEL EMPIRE NHA TRANG - KHANH HOA PROVINCE, VIETNAM
The origin of Condotel:
Condotel (or Condominium hotel), is generally understood as a residential condominium apartment building that is operated as a hotel. The term, in fact, has no definition under Vietnamese laws and has been used by developers to include both condominiums/apartments and villas, offering buyers a number of ownership structures. Below are the four common scenarios.
Scenario 1: The sale of a residential condominium unit/villa in a real estate development project in which the developer is licensed to build residential premises for sale as well as to operate a hotel/resort. The owner can put the units/villas into the rental pool programme managed by the hotel and receive income from it.
Scenario 2: The sale of membership in a club by the developer. Payment of the membership fee entitles the member to use a certain number of days at a villa or room in the resort. This is similar to a “timeshare” arrangement where there is no ownership of a unit and the buyer simply purchases the right to use a certain number of days at a resort.
Scenario 3: The sale of the right to use a specific condominium or villa with a return on investment paid by the developer if the premises are part of the hotel rental pool and the owner is given a certain number of days to use the same or an equivalent unit at the resort. In most cases in Vietnam, the developer guarantees a minimum rate of return on the investor/owner’s investment. There is, however, no ownership right involved. The buyer will never get the red book. This scheme is in fact similar to a loan or investment into a project to finance a developer with the lender or investor receiving monetary benefits in return.
Scenario 4: The long-term lease of a condominium or villa with a guaranteed return if it is put into the rental pool with the owner holding the right to use the unit for a certain number of days. Again, there is no ownership right and no red book.
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